KUCHING: Many officials responsible for the Menu Rahmah economics possess limited ministerial experience and knowledge, which hinders their ability to fully understand the situation.
Malaysia University of Science and Technology (MUST) economist Geoffrey Williams argued that the policy designers are at fault.
“If they have economics degrees, their certificates should be symbolically torn and discarded. If they lack economics degrees, they should steer clear of economic policy,” he told New Sarawak Tribune at a hotel here recently.
For example, official data suggests that multi-billion ringgit brands already dominate the Menu Rahmah RM5 meal scheme.
As of March 12, the Minister of Domestic Trade and Cost of Living, Datuk Seri Salahuddin Ayub, reported that 1,531 establishments had registered, with at least 10 leading brands contributing more than 1,350 outlets nationwide to the scheme.
Williams noted, “This raises the potential number of outlets to nearly 2,200 once all are operational, with more than 61 per cent being multi-million ringgit franchise outlets.”
The Menu Rahmah outlets, he said, are primarily controlled by the ultra-wealthy, not micro-enterprises.
He further explained the consequences for small food stalls.
“On one hand, we see multi-million ringgit franchises providing discounted, government-backed egg sandwiches and leftover salad. On the other hand, we see small, family-owned food stalls struggling to compete and eventually being eliminated by the competition.”
However, Menu Rahmah’s approach does not specifically target the underprivileged, as the food is available for purchase by anyone.
Williams argued that the challenge lies in a stallholder’s inability to differentiate between a casually dressed millionaire and an unemployed single mother dressed professionally for a job interview.
Consequently, this creates market distortion, as clever consumers choose RM5 meals, causing vendors with unsold RM6 meals to appear as if they are taking advantage of customers for profit.
Williams added, “If left to the free market, they would not engage in this segment, as it is not profitable for them, and that is the issue at hand.”
Since its January launch, Menu Rahmah has aimed to include 15,000 outlets but has only achieved around 15 per cent.
The onboarding process prioritises large over small companies because small businesses cannot compete.
Williams warned, “Therefore, the growth in the number of outlets will likely slow, and the number of small food stalls may decrease.”
The research fellow at the central bank also commented on the potential impact on inflation.
“It’s unlikely that this will affect overall price increases, particularly for food bought outside the home, which makes up nearly 12 per cent of the average consumer’s expenses. Instead, the prices of cheaper food options will be restricted, while the more expensive ones will stay the same.”
In response to this situation, Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin announced that his company would reassess Menu Rahmah’s sustainability after three months.
Regarding this, Williams stated, “After that, the space will reopen, but by then, there will be fewer small businesses ready to fill the gap.”
He concluded, “This approach is a false economy. Structural reforms are necessary, and the solution must concentrate on increasing income for those in dire need.”
